Estate agency headcount has fallen sharply in the past nine months as companies turn to AI to handle administrative work, says prime estate agent Jefferies London.

Analysis of UK employment data from Statista shows the number of estate agents and auctioneers fell from 62,400 in the final three months of 2024 to 57,700 in the first three months of 2025.

By the second quarter of 2025, this figure had plummeted to just 53,800.

The decline coincides with wider adoption of AI across the sector, particularly in process-led and back-office roles.

Human element

Jefferies London has found that although AI is removing the need for staff in routine roles, it argues the human element remains essential, particularly in higher-value transactions.

The estate agency, however, is still expanding its own workforce, increasing its headcount by 30% so far this year, with plans to almost double its partner agent numbers by the end of 2026.

It has developed its own AI assistant, J.E.S.S.E., to support agents rather than replace them. During the first three months of 2026, the system handled more than 3,000 enquiries, as well as managing sales calls, buyer qualification and viewing bookings.

Jefferies London estimates it saves each agent around 10 hours per week.

Chief executive  Damien Jefferies (pictured) says: “There is a growing perception that AI is going to replace estate agents and, in many parts of the industry, we’re already seeing businesses reduce headcount and lean more heavily on technology.

There is a growing perception that AI is going to replace estate agents.”

“Our view is very different. We built J.E.S.S.E. because we wanted to give our partner agents every possible advantage, not because we wanted to replace them.

“It takes care of the more repetitive and time-consuming parts of the job, allowing our partner agents to focus on the things that matter most, namely building relationships, advising clients and negotiating deals.”